Religare scouting for AMC acquisition

New Delhi: Financial services firm Religare Enterprises on Monday said it is looking at acquiring an US-based asset management company with focus on emerging markets.

“We are looking at foreign acquisitions for expanding our asset management business. We are talking to some US asset management companies with presence in emerging markets," Religare Enterprises Group CEO Sachindra Nath said on the sidelines of the India Economic Summit in New Delhi.

However, he declined to divulge the financial details or other partnership details relating to the acquisition.

At the end of September, the assets under management (AUM) of Religare stood at Rs10,779.84 crore. The AUM of the industry were Rs7,13,281.23 crore.

Data for October is not available as the mutual fund industry body AMFI has directed the fund houses to disclose AUM data on a quarterly basis.

To a query on applying for new banking licence, Nath said Religare is ready to apply as and when the Reserve Bank of India (RBI) comes out with the final guideline.

“We are ready to apply. We are waiting for the final guideline from the RBI on this," he said.

The RBI is expected to issue by January draft guidelines on entry of new banks.

A host of corporate houses, in the likes of Reliance Capital, Tata Group, L&T, and AV Birla Group, besides Religare are preparing to enter the banking space. Also, NBFCs like Shriram Finance, LIC Housing, Mahindra Finance and IFCI are keen to start a bank.

RBI, in August, brought out a discussion paper on giving out new banking licences to business houses and non-banking finance companies to increase competition in the sector, and to formulate regulations for it.

The apex bank had said it may allow limited entrants, but was apprehensive about the independence and neutrality of banks controlled by industrial houses.